“Are you are Missing Valuable Tax Deductions Right Now that Are Potentially Costing You Thousands of Euros in Tax Savings”
Every year without exception, small business owners like you overpay taxes. But believe it or not, some business owners pay a whole lot less in taxes than others…even on the very same income. Time and time again we take on new clients who are not claiming proper business expenses. A few examples might help.
We took on a new client recently who previously had been claiming an estimate of monthly expenses of 100 to 200 euros a month. We set up a simple recording system and he is now keeping a detailed record of his expenses. As a result his monthly claim is now about 900 euros per month. That’s nearly 10,000 euros per annum.
Another client we took on was a small IT company run by a husband and wife team. Again we introduced a simple system and the result is a combined monthly claim of about a 1000 euro. That’s 12,000 per annum.
So if you feel you are not availing of this tax relief set up a system and you will be really surprised at the amount you have not been claiming.
Better still let us get you set up with receipt bank and make it easy to handle those small receipts see link https://www.receipt-bank.com/
If your children are making a commercial input into your business, a significant tax saving
can be achieved by paying them a wage.
Register for PAYE and operate PAYE on wages.
Have evidence of payment. Pay by cheque/transfer and not cash.
Ensure the payment reflects the commercial contribution of the child’s work.
Record the hours worked in a diary.
A single individual can earn up to 8,250 free of Income Tax and the payment is an allowable deduction
against the taxable profits of the business.
Remember you should seek professional advice from your accounntant/tax adviser before proceeding.
Paddy Gahan Xero Accountant at Gahan.ie
TAX FREE GIFTS
The One4all.ie card is the perfect tool for your business if you are looking to incentivise
and reward staff for this year.
NOW €500 TAX FREE
Under the Revenue Commissioners’ Small Benefit Exemption Scheme employers can now provide employees with a non cash benefit up to the value of €500 every tax year completely free of employee and employer Tax and PRSI.
So go ahead and reward your staff with a TAX FREE Christmas gift this year.
Paddy Gahan Xero accountant at Gahan.ie
Did You Pay Too Much Tax in 2014
Most Small Business Owners Pay More in Taxes Than They Should.
This is because no one has uncovered the Tax Savings Hiding in their Financial Statements
Most accountants wait until the months close to the tax deadline to prepare and file tax returns. At that time they are overworked and drowning. Frankly, they don’t have time to dig deep for ways to lower your taxes – they just want to file your Return and move on!
Unfortunately, this is a recipe for disaster often leading to you OVERPAYING on your taxes.
Is your accountant taking the time and the proactive steps to maximise your tax claims so that you don’t overpay on taxes every year?
At the end of the day, that means money out of your pocket. Money that you could use for holidays , a new car or to just augment your savings.
So if you want to minimise your tax bill call the TAX HOTLINE at 01 6684411
BY PADDY GAHAN
Every year the Revenue estimate there are millions of possible tax refunds left unclaimed. As the average refund is in excess of €800 filing a return is worth following up.
In the past when things were good people did not bother lodging returns. However surely in these tough times its worth checking if you have you a claim.
If there have been any changes in your personal circumstances check out that these have been reflected on your Tax Credit Certificate. The tax deducted by your employer is calculated based on this certificate. So if this Certificate is incorrect your tax deductions may be too high.
Some of the more common items left unclaimed are as follows:
Medical and dental expenses
Trade union fess
Bin and water charges
Single parent allowance
Home carers allowance
Also it is worth remembering that you can claim back refunds for 4 years.
So if you want us to help you get a refund please call us at 01 6684411
With pension tax reliefs under threat and investment returns falling your retirement savings are in danger.
People who are saving for pensions should now be taking advantage of the last chance to get top rate tax relief on contributions.
But many people are nervous because of the poor performance of pension funds over the last decade.
Only 4 group pension managed funds made average annual returns in excess of 1% over the decade. The best performers were the following
Zurich Life 2.7%
Standard Life 1.9%
Merrion Investment 1.5%
Canada Life 1.4%
The pension levy will kick in on September 25th and will continue each year until 2014. The levy will be .6% of the value of funds.
It is expected that the Government will start reducing tax relief on contributions from 2012 onwards.
Backdated Tax Relief
If you make contributions in the next 6 weeks and backdate the claim against 2010 income this will qualify for relief up to 49%. For contributions in 2011 the tax relief will be 41% because contributions only qualify for income tax relief.
Rate of Tax Relief
The Government is expected to cut the the maximum rate of tax relief on contributions frm 41% to 34% in 2012, to 37% in 2013 and to 20% in 2014.
So it makes sense to start or top up your contributions this year to get the maximum tax relief.
With the dramatic fall in pension values, most of the people we meet are worried about the value of their investment portfolio and what impact this will have on their retirement. We can expect to live much longer than any previous generation, so the issue of providing sufficiently for our retirement is of increasing concern.
So if you are worried about your pension why not get a copy of our
10 POINT ACTION PLAN TO PROTECT YOUR PENSION.
Email us at email@example.com for your copy.
Taxpayers to have higher liabilities this year.
Taxpayers may face higher than expected liabilities this year because of the universal social charge and increased income levy.
Hundreds of thousands of people taxed via the self-assessment system must file their 2010 tax return, pay the balance of last year’s tax bill and pay preliminary tax for this year by the October 31 deadline.
Taxpayers who opt to make their return and pay their tax onlive via the Revenue Online Service (ROS) can avail of the extended deadline of November 15.
This year taxpayers may face a higher liability than expected for a number of reasons, including increases in the income levy in 2010 and the introduction of the universal social charge (USC).
The calculation of preliminary has become more complicated this year due to the introduction of the USC, which applies since January 1 this year.
The calculation of preliminary tax needs to be considered well in advance of the deadline. Where tax is underpaid the Revenue can charge interest.
So to make sure that you meet all your filing obligations you should now consult your tax adviser. This will ensure that you will know your liability in good time and have the funds in place to meet your liabilities when filing your return.